FALSE000146212000014621202024-07-242024-07-24

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K 
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): July 24, 2024
LiveOakBancsharesLogo.jpg
LIVE OAK BANCSHARES, INC.
(Exact name of registrant as specified in its charter)
North Carolina001-3749726-4596286
(State or other jurisdiction of incorporation)(Commission File Number)(IRS Employer Identification No.)
1741 Tiburon Drive,Wilmington,NC28403
(Address of principal executive offices)(Zip Code)
Registrant’s Telephone Number, Including Area Code: (910) 790-5867
Not Applicable
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
☐Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol(s)Name of each exchange on which registered
Voting Common Stock, no par value per shareLOBNew York Stock Exchange LLC
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o


Item 2.02.    Results of Operations and Financial Condition.
On July 24, 2024, Live Oak Bancshares, Inc. (the “Company”) announced financial results for the second quarter ended June 30, 2024. A copy of the press release announcing the Company’s results for the second quarter is attached as Exhibit 99.1 hereto and incorporated by reference herein.
The information contained in this report (including Exhibit 99.1) shall not be deemed “filed” for purposes of section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.
Item 9.01.    Financial Statements and Exhibits.
(d)    Exhibits
Exhibit
Number
Description
104Cover Page Interactive Data File (embedded within the Inline XBRL document)
1

SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
LIVE OAK BANCSHARES, INC.
Date: July 24, 2024
By:
/s/ Walter J. Phifer
Walter J. Phifer
Chief Financial Officer
2

Exhibit 99.1
liveoakbancshareslogo.jpg
LIVE OAK BANCSHARES, INC. REPORTS SECOND QUARTER 2024 RESULTS
Wilmington, NC, July 24, 2024 - Live Oak Bancshares, Inc. (NYSE: LOB) (“Live Oak” or “the Company”) today reported second quarter of 2024 net income of $27.0 million, or $0.59 per diluted share.
“Live Oak delivered a solid quarter with growth in loans, deposits and revenue as we continue our mission to serve small businesses across the country,” said Live Oak Chairman and Chief Executive Officer James S. (Chip) Mahan III. “The strength of our portfolio is due to the quality of the entrepreneurs we serve. Our focus on credit strength, specialized industries and deep expertise continues to demonstrate the power of our franchise, and we are confident in the long-term opportunities ahead.”
Second Quarter 2024 Key Measures
(Dollars in thousands, except per share data)Increase (Decrease)
2Q 20241Q 2024DollarsPercent2Q 2023
Total revenue (1)
$125,479 $116,208 $9,271 8.0 %$108,458 
Total noninterest expense77,656 77,737 (81)(0.1)76,457 
Income before taxes36,058 22,107 13,951 63.1 18,973 
Effective tax rate25.2 %(24.8)%n/an/a7.5 %
Net income$26,963 $27,586 $(623)(2.3)%$17,544 
Diluted earnings per share0.59 0.60 (0.01)(1.7)0.39 
Loan and lease production:
Loans and leases originated$1,171,141 $805,129 $366,012 45.5 %$861,033 
% Fully funded38.2 %43.8 %n/an/a49.4 %
Total loans and leases:$9,535,766 $9,223,310 $312,456 3.4 %$8,360,174 
Total assets:11,868,570 11,505,569 363,001 3.2 10,819,196 
Total deposits:10,707,031 10,383,361 323,670 3.1 9,879,111 
(1)Total revenue consists of net interest income and total noninterest income.
Loans and Leases
As of June 30, 2024, the total loan and lease portfolio was $9.54 billion, 3.4% above its level at March 31, 2024, and 14.1% above its level a year ago. This growth was the product of strong origination volumes. Compared to the first quarter of 2024, loans and leases held for investment increased $259.6 million, or 2.9%, to $9.17 billion while loans held for sale increased $52.9 million, or 17.0%, to $363.6 million. Average loans and leases were $9.38 billion during the second quarter of 2024 compared to $9.11 billion during the first quarter of 2024. 
The total loan and lease portfolio at June 30, 2024, and March 31, 2024, was comprised of 36.4% and 37.4% of guaranteed loans and leases, respectively.
Loan and lease originations totaled $1.17 billion during the second quarter of 2024, an increase of $366.0 million, or 45.5%, from the first quarter of 2024. Loan and lease originations increased $310.1 million, or 36.0%, from the second quarter of 2023.
1

Deposits
Total deposits increased to $10.71 billion at June 30, 2024, an increase of $323.7 million compared to March 31, 2024, and an increase of $827.9 million compared to June 30, 2023. The increase in total deposits from prior periods was to support growth in the loan and lease portfolio as well as the Company’s targeted liquidity levels.
Average total interest-bearing deposits for the second quarter of 2024 increased $197.7 million, or 2.0%, to $10.27 billion, compared to $10.07 billion for the first quarter of 2024. The ratio of average total loans and leases to average interest-bearing deposits was 91.4% for the second quarter of 2024, compared to 90.4% for the first quarter of 2024.
Borrowings
Borrowings totaled $117.7 million at June 30, 2024 compared to $120.2 million and $28.3 million at March 31, 2024, and June 30, 2023, respectively. During the first quarter of 2024, the Company increased long-term borrowings by $100.0 million through an unsecured 5.95% fixed rate 60-month term loan with a third party correspondent bank. This increase in borrowings was to strategically enhance capital levels in order to accommodate future growth expectations.
Net Interest Income
Net interest income for the second quarter of 2024 was $91.3 million compared to $90.1 million for the first quarter of 2024 and $84.3 million for the second quarter of 2023. The net interest margin for the second quarter of 2024 and first quarter of 2024 was 3.28% and 3.33%, respectively, a decrease of five basis points quarter over quarter. During the second quarter of 2024, the average cost of interest-bearing liabilities increased by eight basis points, partially driven by a full quarter’s worth of interest expense on the $100.0 million incremental borrowing added in late first quarter of 2024, while the average yield on interest-earning assets increased by one basis point.
The increase in net interest income for the second quarter of 2024 compared to the second quarter of 2023 was driven by growth in average loans and leases held for investment. Partially mitigating this increase was a decrease in the net interest margin by one basis point arising from an increase in deposits and borrowings, combined with the increase in average cost of funds, outpacing the increase in average yield on interest-earning assets.
Noninterest Income
Noninterest income for the second quarter of 2024 was $34.2 million, an increase of $8.1 million compared to the first quarter of 2024, and an increase of $10.0 million compared to the second quarter of 2023. The primary drivers in noninterest income changes are outlined below.
Net gains on sales of loans was $14.4 million, a $2.9 million increase compared to the first quarter of 2024 and a $3.6 million increase compared to the second quarter of 2023. The quarter over quarter increase in net gains on sales of loans was largely the result of increased loan sale volumes, and the increase over the second quarter of 2023 was largely related to higher premiums while loan sale volumes remained somewhat consistent. The average guaranteed loan sale premium was 106%, 107% and 105% for the second and first quarters of 2024 and second quarter of 2023, respectively. The volume of guaranteed loans sold was $250.5 million for the second quarter of 2024 compared to $186.7 million sold in the first quarter of 2024 and $245.1 million sold in the second quarter of 2023.
Equity method investment losses totaled $1.8 million for the second quarter of 2024, a $3.3 million decrease from $5.0 million in losses in the first quarter of 2024. The decrease was principally related to lower levels of underlying losses in several of the Company’s equity method investees.
Other noninterest income for the second quarter of 2024 totaled $11.0 million compared to $3.9 million for the second quarter of 2023. This $7.1 million increase in noninterest income was largely related to a $6.7 million gain arising from the sale of one of the Company’s aircraft in the second quarter of 2024.
Noninterest Expense
Noninterest expense for the second quarter of 2024 totaled $77.7 million compared to $77.7 million for the first quarter of 2024 and $76.5 million for the second quarter of 2023. Compared to the second quarter of 2023, noninterest expense was principally impacted by increased salaries and employee benefits of $3.2 million, partially offset by $2.4 million in decreased levels of FDIC insurance expense. The increase in salaries and employee benefits was largely the product of continued investment in human resources to support strategic and growth initiative, while the decrease in FDIC insurance expense was the product of favorable changes in the Company’s FDIC assessment rates.
2

Asset Quality
During the second quarter of 2024, the Company recognized net charge-offs for loans carried at historical cost of $8.3 million, compared to $3.2 million in the first quarter of 2024 and $1.2 million in the second quarter of 2023. Net charge-offs as a percentage of average held for investment loans and leases carried at historical cost, annualized, for the quarters ended June 30, 2024, March 31, 2024, and June 30, 2023, was 0.38%, 0.15% and 0.06%, respectively.
Unguaranteed nonperforming (nonaccrual) loans and leases, excluding $9.6 million and $7.9 million accounted for under the fair value option at June 30, 2024, and March 31, 2024, respectively, decreased to $37.3 million, or 0.42% of loans and leases held for investment which are carried at historical cost, at June 30, 2024, compared to $43.1 million, or 0.51%, at March 31, 2024.
Provision for Credit Losses
The provision for credit losses for the second quarter of 2024 totaled $11.8 million compared to $16.4 million for the first quarter of 2024 and $13.0 million for the second quarter of 2023. The lower level of provision expense in the second quarter of 2024 was primarily the result of a decrease in specific reserves required for loans individually evaluated for impairment.
The allowance for credit losses on loans and leases totaled $137.9 million at June 30, 2024, compared to $139.0 million at March 31, 2024. The allowance for credit losses on loans and leases as a percentage of total loans and leases held for investment carried at historical cost was 1.57% and 1.63% at June 30, 2024, and March 31, 2024, respectively.
Income Tax
Income tax expense (benefit) and related effective tax rate was $9.1 million and 25.2% for the second quarter of 2024, $(5.5) million and (24.8)% for the first quarter of 2024 and $1.4 million and 7.5% for the second quarter of 2023, respectively. The higher level of income tax expense for the second quarter of 2024 compared to the first quarter of 2024 was primarily the result of $10.6 million in increased levels of investment tax credits in the first quarter of 2024, arising from the Internal Revenue Service’s expansion of qualifying energy communities guidance during that quarter. The higher level of income tax expense for the second quarter of 2024 as compared to the second quarter of 2023 was primarily the result of the combination of increased pretax income and lower levels of anticipated investment tax credits in 2024 as compared to the prior year.
Conference Call
Live Oak will host a conference call to discuss the Company's financial results and business outlook tomorrow, July 25, 2024, at 9:00 a.m. ET. The call will be accessible by telephone and webcast using Conference ID: 54806566. A supplementary slide presentation will be posted to the website prior to the event, and a replay will be available for 12 months following the event. The conference call details are as follows:
Live Telephone Dial-In
U.S.: 888.259.6580
International: +1 416.764.8624
Pass Code: None Required
Live Webcast Log-In
Webcast Link: investor.liveoakbank.com
Registration: Name and Email Required
Multi-Factor Code: Provided After Registration
3

Important Note Regarding Forward-Looking Statements
Statements in this press release that are based on other than historical data or that express the Company’s plans or expectations regarding future events or determinations are forward-looking within the meaning of the Private Securities Litigation Reform Act of 1995. Statements based on historical data are not intended and should not be understood to indicate the Company’s expectations regarding future events. Forward-looking statements provide current expectations or forecasts of future events or determinations. These forward-looking statements are not guarantees of future performance or determinations, nor should they be relied upon as representing management’s views as of any subsequent date. Forward-looking statements involve significant risks and uncertainties, and actual results may differ materially from those presented, either expressed or implied, in this press release. Factors that could cause actual results to differ materially from those expressed in the forward-looking statements include changes in Small Business Administration (“SBA”) rules, regulations or loan products, including the Section 7(a) program, changes in SBA standard operating procedures or changes in Live Oak Banking Company's status as an SBA Preferred Lender; changes in rules, regulations or procedures for other government loan programs, including those of the United States Department of Agriculture; the impacts of global health crises and pandemics, such as the Coronavirus Disease 2019 (COVID-19) pandemic, on trade (including supply chains and export levels), travel, employee productivity and other economic activities that may have a destabilizing and negative effect on financial markets, economic activity and customer behavior; adverse developments in the banking industry highlighted by high-profile bank failures and the potential impact of such developments on customer confidence, liquidity, and regulatory responses to these developments; a reduction in or the termination of the Company's ability to use the technology-based platform that is critical to the success of its business model, including a failure in or a breach of operational or security systems or those of its third-party service providers; technological risks and developments, including cyber threats, attacks, or events; competition from other lenders; the Company's ability to attract and retain key personnel; market and economic conditions and the associated impact on the Company; operational, liquidity and credit risks associated with the Company's business; changes in political and economic conditions, including any prolonged U.S. government shutdown; the impact of heightened regulatory scrutiny of financial products and services and the Company's ability to comply with regulatory requirements and expectations; a deterioration of the credit rating for U.S. long-term sovereign debt, actions that the U.S. government may take to avoid exceeding the debt ceiling, and uncertainties surrounding the debt ceiling and the federal budget; adverse results, including related fees and expenses, from pending or future lawsuits, government investigations or private actions; and the other factors discussed in the Company’s Annual Report on Form 10-K filed with the Securities and Exchange Commission (“SEC”) and available at the SEC’s Internet site (http://www.sec.gov). Except as required by law, the Company specifically disclaims any obligation to update any factors or to publicly announce the result of revisions to any of the forward-looking statements included herein to reflect future events or developments.
About Live Oak Bancshares, Inc.
Live Oak Bancshares, Inc. (NYSE: LOB) is a financial holding company and the parent company of Live Oak Bank. Live Oak Bancshares and its subsidiaries partner with businesses that share a groundbreaking focus on service and technology to redefine banking. To learn more, visit www.liveoakbank.com.
Contacts:
Walter J. Phifer | CFO | Investor Relations | 910.202.6926
Claire Parker | Corporate Communications | Media Relations | 910.597.1592
4

Live Oak Bancshares, Inc.
Quarterly Statements of Income (unaudited)
(Dollars in thousands, except per share data)
Three Months Ended2Q 2024 Change vs.
2Q 20241Q 20244Q 20233Q 20232Q 20231Q 20242Q 2023
Interest income%%
Loans and fees on loans$181,840 $176,010 $169,531 $162,722 $152,362 3.3 19.3 
Investment securities, taxable9,219 8,954 8,746 8,701 8,503 3.0 8.4 
Other interest earning assets7,389 7,456 8,259 9,188 8,847 (0.9)(16.5)
Total interest income198,448 192,420 186,536 180,611 169,712 3.1 16.9 
Interest expense 
Deposits105,358 101,998 96,695 90,914 85,003 3.3 23.9 
Borrowings1,770 311 265 287 407 469.1 334.9 
Total interest expense107,128 102,309 96,960 91,201 85,410 4.7 25.4 
Net interest income91,320 90,111 89,576 89,410 84,302 1.3 8.3 
Provision for credit losses11,765 16,364 8,995 10,279 13,028 (28.1)(9.7)
Net interest income after provision for credit losses79,555 73,747 80,581 79,131 71,274 7.9 11.6 
Noninterest income
Loan servicing revenue7,347 7,624 7,342 6,990 6,687 (3.6)9.9 
Loan servicing asset revaluation(2,878)(2,744)(3,974)11,335 (2,831)(4.9)(1.7)
Net gains on sales of loans14,395 11,502 12,891 12,675 10,804 25.2 33.2 
Net gain (loss) on loans accounted for under the fair value option172 (219)(170)(568)1,728 178.5 (90.0)
Equity method investments (loss) income(1,767)(5,022)47 (1,034)(2,055)64.8 14.0 
Equity security investments gains (losses), net161 (529)(384)(783)121 130.4 33.1 
Lease income2,423 2,453 2,439 2,498 2,535 (1.2)(4.4)
Management fee income3,271 3,271 3,309 3,277 3,266 — 0.2 
Other noninterest income11,035 9,761 8,607 3,501 3,901 13.1 182.9 
Total noninterest income34,159 26,097 30,107 37,891 24,156 30.9 41.4 
Noninterest expense
Salaries and employee benefits46,255 47,275 44,274 42,947 43,066 (2.2)7.4 
Travel expense2,328 2,438 1,544 2,197 2,770 (4.5)(16.0)
Professional services expense3,061 1,878 3,052 1,762 1,996 63.0 53.4 
Advertising and marketing expense3,004 3,692 2,501 3,446 3,009 (18.6)(0.2)
Occupancy expense2,388 2,247 2,231 2,129 2,205 6.3 8.3 
Technology expense7,996 7,723 8,402 7,722 8,005 3.5 (0.1)
Equipment expense3,511 3,074 3,480 3,676 4,023 14.2 (12.7)
Other loan origination and maintenance expense3,659 3,911 3,937 3,498 3,442 (6.4)6.3 
Renewable energy tax credit investment impairment (recovery)170 (927)14,575 — — 118.3 100.0 
FDIC insurance2,649 3,200 4,091 4,115 5,061 (17.2)(47.7)
Other expense2,635 3,226 5,117 2,770 2,880 (18.3)(8.5)
Total noninterest expense77,656 77,737 93,204 74,262 76,457 (0.1)1.6 
Income before taxes36,058 22,107 17,484 42,760 18,973 63.1 90.0 
Income tax expense (benefit)9,095 (5,479)1,321 2,967 1,429 266.0 536.5 
Net income$26,963 $27,586 $16,163 $39,793 $17,544 (2.3)53.7 
Earnings per share
Basic$0.60 $0.62 $0.36 $0.89 $0.40 (3.2)50.0 
Diluted$0.59 $0.60 $0.36 $0.88 $0.39 (1.7)51.3 
Weighted average shares outstanding
Basic44,974,942 44,762,308 44,516,646 44,408,997 44,327,474 
Diluted45,525,082 45,641,210 45,306,506 45,268,745 44,835,089 
5

Live Oak Bancshares, Inc.
Quarterly Balance Sheets (unaudited)
(Dollars in thousands)
As of the quarter ended2Q 2024 Change vs.
2Q 20241Q 20244Q 20233Q 20232Q 20231Q 20242Q 2023
Assets%%
Cash and due from banks$615,449 $597,394 $582,540 $534,774 $808,131 3.0 (23.8)
Certificates of deposit with other banks250 250 250 3,750 4,000 — (93.8)
Investment securities available-for-sale1,151,195 1,120,622 1,126,160 1,099,878 1,133,146 2.7 1.6 
Loans held for sale
363,632 310,749 387,037 572,604 523,776 17.0 (30.6)
Loans and leases held for investment (1)
9,172,134 8,912,561 8,633,847 8,202,631 7,836,398 2.9 17.0 
Allowance for credit losses on loans and leases(137,867)(139,041)(125,840)(121,273)(120,116)0.8 (14.8)
Net loans and leases9,034,267 8,773,520 8,508,007 8,081,358 7,716,282 3.0 17.1 
Premises and equipment, net267,864 258,071 257,881 258,041 269,485 3.8 (0.6)
Foreclosed assets8,015 8,561 6,481 6,701 — (6.4)100.0 
Servicing assets51,528 49,343 48,591 47,127 31,042 4.4 66.0 
Other assets376,370 387,059 354,476 346,227 333,334 (2.8)12.9 
Total assets$11,868,570 $11,505,569 $11,271,423 $10,950,460 $10,819,196 3.2 9.7 
Liabilities and shareholders’ equity
Liabilities
Deposits:
Noninterest-bearing$264,013 $226,668 $259,270 $239,536 $229,833 16.5 14.9 
Interest-bearing10,443,018 10,156,693 10,015,749 9,764,106 9,649,278 2.8 8.2 
Total deposits10,707,031 10,383,361 10,275,019 10,003,642 9,879,111 3.1 8.4 
Borrowings117,745 120,242 23,354 25,847 28,317 (2.1)315.8 
Other liabilities82,745 74,248 70,384 70,603 79,280 11.4 4.4 
Total liabilities10,907,521 10,577,851 10,368,757 10,100,092 9,986,708 3.1 9.2 
Shareholders’ equity
Preferred stock, no par value, 1,000,000 shares authorized, none issued or outstanding— — — — — — — 
Class A common stock (voting)356,381 349,648 344,568 340,929 341,032 1.9 4.5 
Class B common stock (non-voting)— — — — — — — 
Retained earnings695,172 669,307 642,817 627,759 589,036 3.9 18.0 
Accumulated other comprehensive loss(90,504)(91,237)(84,719)(118,320)(97,580)0.8 7.3 
Total shareholders' equity961,049 927,718 902,666 850,368 832,488 3.6 15.4 
Total liabilities and shareholders’ equity$11,868,570 $11,505,569 $11,271,423 $10,950,460 $10,819,196 3.2 9.7 
(1)Includes $363.0 million, $379.2 million, $388.0 million, $410.1 million and $441.8 million measured at fair value for the quarters ended June 30, 2024, March 31, 2024, December 31, 2023, September 30, 2023, and June 30, 2023, respectively.
6

Live Oak Bancshares, Inc.
Statements of Income (unaudited)
(Dollars in thousands, except per share data)
Six Months Ended
June 30, 2024June 30, 2023
Interest income
Loans and fees on loans$357,850 $291,414 
Investment securities, taxable18,173 16,050 
Other interest earning assets14,845 13,664 
Total interest income390,868 321,128 
Interest expense
Deposits207,356 152,598 
Borrowings2,081 2,211 
Total interest expense209,437 154,809 
Net interest income181,431 166,319 
Provision for credit losses28,129 32,049 
Net interest income after provision for credit losses153,302 134,270 
Noninterest income
Loan servicing revenue14,971 13,067 
Loan servicing asset revaluation(5,622)(2,475)
Net gains on sales of loans25,897 20,979 
Net loss on loans accounted for under the fair value option(47)(2,801)
Equity method investments (loss) income(6,789)(5,007)
Equity security investments (losses) gains, net(368)198 
Lease income4,876 5,070 
Management fee income6,542 6,738 
Other noninterest income20,796 7,966 
Total noninterest income60,256 43,735 
Noninterest expense
Salaries and employee benefits93,530 87,831 
Travel expense4,766 5,181 
Professional services expense4,939 2,923 
Advertising and marketing expense6,696 6,612 
Occupancy expense4,635 4,130 
Technology expense15,719 15,734 
Equipment expense6,585 7,841 
Other loan origination and maintenance expense7,570 7,369 
Renewable energy tax credit investment (recovery) impairment(757)69 
FDIC insurance5,849 8,464 
Other expense5,861 9,265 
Total noninterest expense155,393 155,419 
Income before taxes58,165 22,586 
Income tax expense3,616 4,644 
Net income$54,549 $17,942 
Earnings per share
Basic$1.22 $0.41 
Diluted$1.20 $0.40 
Weighted average shares outstanding
Basic44,868,625 44,242,785 
Diluted45,583,146 44,900,323 
7

Live Oak Bancshares, Inc.
Quarterly Selected Financial Data
(Dollars in thousands, except per share data)
As of and for the three months ended
2Q 20241Q 20244Q 20233Q 20232Q 2023
Income Statement Data
Net income$26,963 $27,586 $16,163 $39,793 $17,544 
Per Common Share
Net income, diluted$0.59 $0.60 $0.36 $0.88 $0.39 
Dividends declared0.03 0.03 0.03 0.03 0.03 
Book value21.35 20.64 20.23 19.12 18.77 
Tangible book value (1)
21.28 20.57 20.15 19.04 18.69 
Performance Ratios
Return on average assets (annualized)0.93 %0.98 %0.58 %1.46 %0.66 %
Return on average equity (annualized)11.39 11.93 7.36 18.68 8.26 
Net interest margin3.28 3.33 3.32 3.37 3.29 
Efficiency ratio (1)
61.89 66.89 77.88 58.34 70.49 
Noninterest income to total revenue27.22 22.46 25.16 29.76 22.27 
Selected Loan Metrics
Loans and leases originated$1,171,141 $805,129 $981,703 $1,073,255 $861,033 
Outstanding balance of sold loans serviced4,292,857 4,329,097 4,238,328 4,028,575 3,813,852 
Asset Quality Ratios
Allowance for credit losses to loans and leases held for investment (3)
1.57 %1.63 %1.53 %1.56 %1.62 %
Net charge-offs (3)
$8,253 $3,163 $4,428 $9,122 $1,154 
Net charge-offs to average loans and leases held for investment (2) (3)
0.38 %0.15 %0.22 %0.48 %0.06 %
Nonperforming loans and leases at historical cost (3)
Unguaranteed$37,340 $43,117 $39,285 $33,255 $44,899 
Guaranteed122,752 105,351 95,678 65,837 66,322 
Total160,092 148,468 134,963 99,092 111,221 
Unguaranteed nonperforming historical cost loans and leases, to loans and leases held for investment (3)
0.42 %0.51 %0.48 %0.43 %0.61 %
Nonperforming loans at fair value (4)
Unguaranteed$9,590 $7,942 $7,230 $6,518 $8,602 
Guaranteed51,570 47,620 41,244 39,378 45,114 
Total61,160 55,562 48,474 45,896 53,716 
Unguaranteed nonperforming fair value loans to fair value loans held for investment (4)
2.64 %2.09 %1.86 %1.59 %1.95 %
Capital Ratios
Common equity tier 1 capital (to risk-weighted assets)11.85 %11.89 %11.73 %11.63 %11.55 %
Tier 1 leverage capital (to average assets)8.71 8.69 8.58 8.56 8.46 
Notes to Quarterly Selected Financial Data
(1)See accompanying GAAP to Non-GAAP Reconciliation.
(2)Quarterly net charge-offs as a percentage of quarterly average loans and leases held for investment, annualized.
(3)Loans and leases at historical cost only (excludes loans measured at fair value).
(4)Loans accounted for under the fair value option only (excludes loans and leases carried at historical cost).
8

Live Oak Bancshares, Inc.
Quarterly Average Balances and Net Interest Margin
(Dollars in thousands)
Three Months Ended
June 30, 2024
Three Months Ended
March 31, 2024
Average BalanceInterestAverage Yield/RateAverage BalanceInterestAverage Yield/Rate
Interest-earning assets:
Interest-earning balances in other banks$555,570 $7,389 5.35 %$542,243 $7,456 5.53 %
Investment securities1,263,675 9,219 2.93 1,240,861 8,954 2.90 
Loans held for sale387,824 9,329 9.67 353,476 8,354 9.51 
Loans and leases held for investment (1)
8,997,164 172,511 7.71 8,753,232 167,656 7.70 
Total interest-earning assets11,204,233 198,448 7.12 10,889,812 192,420 7.11 
Less: Allowance for credit losses on loans and leases(136,668)(125,447)
Noninterest-earning assets562,488 550,839 
Total assets$11,630,053 $11,315,204 
Interest-bearing liabilities:
Interest-bearing checking$304,505 $4,267 5.64 %$300,067 $4,183 5.61 %
Savings4,804,037 48,617 4.07 4,552,390 46,171 4.08 
Money market accounts128,625 186 0.58 125,317 187 0.60 
Certificates of deposit5,032,856 52,288 4.18 5,094,553 51,457 4.06 
Total deposits10,270,023 105,358 4.13 10,072,327 101,998 4.07 
Borrowings119,321 1,770 5.97 26,772 311 4.67 
Total interest-bearing liabilities10,389,344 107,128 4.15 10,099,099 102,309 4.07 
Noninterest-bearing deposits223,026 213,571 
Noninterest-bearing liabilities70,667 77,942 
Shareholders' equity947,016 924,592 
Total liabilities and shareholders' equity$11,630,053 $11,315,204 
Net interest income and interest rate spread$91,320 2.97 %$90,111 3.04 %
Net interest margin3.28 3.33 
Ratio of average interest-earning assets to average interest-bearing liabilities107.84 %107.83 %
(1)Average loan and lease balances include non-accruing loans and leases.
9

Live Oak Bancshares, Inc.
GAAP to Non-GAAP Reconciliation
(Dollars in thousands)
As of and for the three months ended
2Q 20241Q 20244Q 20233Q 20232Q 2023
Total shareholders’ equity$961,049 $927,718 $902,666 $850,368 $832,488 
Less:
Goodwill1,797 1,797 1,797 1,797 1,797 
Other intangible assets1,644 1,682 1,721 1,759 1,797 
Tangible shareholders’ equity (a)$957,608 $924,239 $899,148 $846,812 $828,894 
Shares outstanding (c)45,003,856 44,938,673 44,617,673 44,480,215 44,351,715 
Total assets$11,868,570 $11,505,569 $11,271,423 $10,950,460 $10,819,196 
Less:
Goodwill1,797 1,797 1,797 1,797 1,797 
Other intangible assets1,644 1,682 1,721 1,759 1,797 
Tangible assets (b)$11,865,129 $11,502,090 $11,267,905 $10,946,904 $10,815,602 
Tangible shareholders’ equity to tangible assets (a/b)8.07 %8.04 %7.98 %7.74 %7.66 %
Tangible book value per share (a/c)$21.28 $20.57 $20.15 $19.04 $18.69 
Efficiency ratio:
Noninterest expense (d)$77,656 $77,737 $93,204 $74,262 $76,457 
Net interest income91,320 90,111 89,576 89,410 84,302 
Noninterest income34,159 26,097 30,107 37,891 24,156 
Total revenue (e)$125,479 $116,208 $119,683 $127,301 $108,458 
Efficiency ratio (d/e)61.89 %66.89 %77.88 %58.34 %70.49 %
This press release presents non-GAAP financial measures. The adjustments to reconcile from the non-GAAP financial measures to the applicable GAAP financial measure are included where applicable in financial results presented in accordance with GAAP. The Company considers these adjustments to be relevant to ongoing operating results. The Company believes that excluding the amounts associated with these adjustments to present the non-GAAP financial measures provides a meaningful base for period-to-period comparisons, which will assist regulators, investors, and analysts in analyzing the operating results or financial position of the Company. The non-GAAP financial measures are used by management to assess the performance of the Company’s business, for presentations of Company performance to investors, and for other reasons as may be requested by investors and analysts. The Company further believes that presenting the non-GAAP financial measures will permit investors and analysts to assess the performance of the Company on the same basis as that applied by management. Non-GAAP financial measures have inherent limitations, are not required to be uniformly applied, and are not audited. Although non-GAAP financial measures are frequently used by shareholders to evaluate a company, they have limitations as an analytical tool and should not be considered in isolation or as a substitute for analysis of results reported under GAAP.
10
v3.24.2
Cover
Jul. 24, 2024
Cover [Abstract]  
Document Type 8-K
Document Period End Date Jul. 24, 2024
Entity Registrant Name LIVE OAK BANCSHARES, INC.
Entity Incorporation, State or Country Code NC
Entity File Number 001-37497
Entity Tax Identification Number 26-4596286
Entity Address, Address Line One 1741 Tiburon Drive,
Entity Address, City or Town Wilmington,
Entity Address, State or Province NC
Entity Address, Postal Zip Code 28403
City Area Code 910
Local Phone Number 790-5867
Written Communications false
Soliciting Material false
Pre-commencement Tender Offer false
Pre-commencement Issuer Tender Offer false
Title of 12(b) Security Voting Common Stock, no par value per share
Trading Symbol LOB
Security Exchange Name NYSE
Entity Emerging Growth Company false
Amendment Flag false
Entity Central Index Key 0001462120
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